Small businesses (annual turnover of less than $2m) are eligible for an additional 50% tax deduction.
What assets does the tax bonus apply to?
It applies to tangible depreciating assets used in carrying on a business – e.g. cars, machinery, equipment. The deduction is equal to 50% of the asset’s cost.
Does it apply to used cars?
The tax bonus is for new and demonstrator cars only.
Who is eligible?
Taxpayers who carry on a business with an annual turnover of less than $2 million may be eligible to claim the extra 50% tax bonus on new cars used primarily for business.
Am I eligible? Find out now
How do I claim?
You can claim the additional 50% allowance on top of the usual capital allowance deduction you claim as part of your income tax return.
How much can I claim?
The price limit for a new car is $57,180. This means that, at the 50% rate, the maximum deduction available for a new car in 2008/09 is $28,590.
When can I claim?
You can claim the 50% tax bonus as a deduction in your income tax return for the income year in which the car is delivered and ready for use. So if it is delivered by 30 June 2009, you can claim the tax bonus in the 2008/09 financial year.
Large businesses (annual turnover of $2m or more) are eligible for an additional 30% tax deduction.
What assets does the tax bonus apply to?
It applies to tangible depreciating assets used in carrying on a business – e.g. cars, machinery, equipment. The deduction is equal to 30% of the asset’s cost.
Does it apply to used cars?
The tax bonus is for new and demonstrator cars only.
Who is eligible?
Taxpayers who carry on a business may be eligible to claim the extra 30% tax bonus on new cars used primarily for business. Am I eligible? Find out now
How do I claim?
You can claim the additional 30% allowance on top of the usual capital allowance deduction you claim as part of your income tax return.
How much can I claim?
The price limit for a new car is $57,180. This means that, at the 30% rate, the maximum deduction available for a new car in 2008/09 is $17,154.
When can I claim?
You can claim the tax bonus as a deduction in your income tax return for the income year in which the car is delivered and ready for use. So if it is delivered by 30 June 2009, you can claim the tax bonus in the 2008/09 financial year.
When is the deadline?
You must buy or order the car between 13 December 2008 and 30 June 2009. The car does not need to be delivered for use until 30 June 2010.
What if I miss the deadline?
If you buy between 1 July 2009 and 31 December 2009, and the car is ready for use before 31 December 2010, the tax bonus deduction drops to 10% of the asset’s cost.